Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Components of Long-Term Debt

The following table presents the components of our long-term debt, net of unamortized discounts and adjustments related to hedging with derivative financial instruments. We use interest rate swaps and caps, which modify the repricing characteristics of certain long-term debt, to manage interest rate risk. For more information about such financial instruments, see Note 8 (“Derivatives and Hedging Activities”). 

December 31,
dollars in millions	2018		2017
Senior medium-term notes due through 2021 (a)	$	3,278	$	2,766
3.136% Subordinated notes due 2028 (b)	162		161
6.875% Subordinated notes due 2029 (b)	104		109
7.75% Subordinated notes due 2029 (b)	135		141
7.25% Subordinated notes due 2021 (c)	336		348
6.75% Senior notes due 2020 (d)	315		327
Other subordinated notes (b), (e)	70		69
Total parent company	4,400		3,921
Senior medium-term notes due through 2039 (f)	7,022		8,011
3.18% Senior remarketable notes due 2027 (g)	212		202
4.625% Subordinated notes due 2018 (h)	—		100
3.40% Subordinated notes due 2026 (h)	560		565
6.95% Subordinated notes due 2028 (h)	299		299
Secured borrowing due through 2025 (i)	10		24
Federal Home Loan Bank advances due through 2038 (j)	1,130		1,106
Investment Fund Financing due through 2052 (k)	83		88
Obligations under Capital Leases due through 2032 (l)	16		17
Total subsidiaries	9,332		10,412
Total long-term debt	$	13,732	$	14,333

 

(a) Senior medium-term notes had a weighted-average interest rate of 4.057% at December 31, 2018, and 3.56% at December 31, 2017. These notes had fixed interest rates at December 31, 2018, and December 31, 2017. These notes may not be redeemed prior to their maturity dates.

(b) See Note 20 (“Trust Preferred Securities Issued by Unconsolidated Subsidiaries”) for a description of these notes.

(c) The First Niagara subordinated debt had a weighted-average interest rate of 7.25% at December 31, 2018, and a weighted-average interest rate of 7.25% at December 31, 2017. These notes may not be redeemed prior to their maturity dates.

(d) The First Niagara senior notes had a weighted-average interest rate of 6.75% at December 31, 2018, and a weighted-average interest rate of 6.75% at December 31, 2017. These notes may not be redeemed prior to their maturity dates.

(e) The First Niagara variable rate trust preferred securities had a weighted-average interest rate of 4.20% at December 31, 2018, and 3.022% at December 31, 2017. These notes may be redeemed prior to their maturity dates.

(f) Senior medium-term notes had weighted-average interest rates of 2.593% at December 31, 2018, and 2.24% at December 31, 2017. These notes are a combination of fixed and floating rates. These notes may not be redeemed prior to their maturity dates.

(g) The remarketable senior medium-term notes had a weighted-average interest rate of 3.18% at December 31, 2018, and 3.18% at December 31, 2017. These notes had fixed interest rates at December 31, 2017, and December 31, 2018. These notes may not be redeemed prior to their maturity dates.

(h) These notes are all obligations of KeyBank and may not be redeemed prior to their maturity dates.

(i) The secured borrowing had weighted-average interest rates of 4.455% at December 31, 2018, and 4.460% at December 31, 2017. This borrowing is collateralized by commercial lease financing receivables, and principal reductions are based on the cash payments received from the related receivables. Additional information pertaining to these commercial lease financing receivables is included in Note 4 (“Loan Portfolio”).

(j) Long-term advances from the Federal Home Loan Bank had a weighted-average interest rate of 2.333% at December 31, 2018, and 2.318% at December 31, 2017. These advances, which had fixed interest rates, were secured by real estate loans and securities totaling $1.1 billion at December 31, 2018, and $1.1 billion at December 31, 2017.

(k) Investment Fund Financing had a weighted-average interest rate of 1.85% at December 31, 2018, and 1.94% at December 31, 2017.

(l) These are capital leases acquired in the First Niagara merger with a maturity range from June 2019 through October 2032.

Scheduled Principal Payments on Long-Term Debt

At December 31, 2018, scheduled principal payments on long-term debt were as follows:

in millions	Parent		Subsidiaries		Total
2019	—		$	2,262	$	2,262
2020	$	1,298	1,396		2,694
2021	1,350		1,744		3,094
2022	—		1,469		1,469
2023	—		456		456
All subsequent years	1,752		2,005		3,757